Does auto insurance pay if my car is stolen?
If you have comprehensive auto insurance, which costs $199 a month on average, then you'll be happy to know that the answer to "Does auto insurance pay if my car is stolen?" is a resounding yes. Our experts review what to do when your car is stolen and what to expect from your insurance provider.
Free Car Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
UPDATED: Feb 26, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Feb 26, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- A comprehensive auto insurance policy will protect your car from theft, losses, and damage not caused by a collision
- Always file a police report if your car is stolen, and then call your insurance company
- Without proper coverage, if your car is stolen insurance won’t pay out
Given that auto thefts are on the rise nationwide, “Does auto insurance pay if my car is stolen?” is a very relevant question to ask. The answer is maybe.
Whether auto insurance will pay you for your car vehicle depends upon your policy and the type of auto insurance you have.
What happens if your car gets stolen and you have full coverage? Then you’re in luck, from an insurance point of view. These types of comprehensive policies usually protect you and your car against problems not caused by collisions, such as theft, vandalism, and breakdowns.
What to Do if Your Car Is Stolen
First, if your car is stolen you should first call the police about the theft and file a police report, then call your car insurance carrier to let them know about the stolen car.
Be sure you know what your car insurance policy covers before something like this happens.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Insurance May Cover a Stolen Car
Does AAA cover stolen cars? Does liability coverage cover theft?
The insurance coverage you purchase determines whether you will be covered in the event of theft. If your car gets stolen, insurance companies won’t cover you if you only have liability coverage.
So yes, if your car is stolen, insurance does cover it if you have comprehensive coverage. But liability insurance doesn’t cover theft.
What does liability insurance cover? Liability coverage protects you if you cause an accident that injures others or damages their property.
After you file a police report, call your insurance company and let them know that your car has been stolen. Your auto insurance company will likely tell you to wait a certain number of days (determined by the individual insurance company).
If the stolen car isn’t found when that time has passed, you will be reimbursed at the current market value of your car. If the car is found but damaged, you will be paid the repair costs, less any applicable deductible.
Insurance Pays if a Car Is Stolen, but Later Found Damaged
How long does it take for insurance to pay out on a stolen vehicle? Most car insurance companies have a set number of days that they’ll wait for a stolen car to be found before they pay on a claim.
If yours is found before that time has expired, but is found damaged, you will need to decide whether it’s worth paying your deductible and having your insurance company pay for the damage or just paying to fix the car out of your own pocket.
🤯Did you know that replacing your catalytic converter can cost upwards of $2,500?❌Don’t get caught without coverage. Visit https://t.co/27f1xf131D to get auto insurance quotes today! Need more info on this type of theft? 🚗🚧Check out this article: https://t.co/GkLRGTrNIZ. pic.twitter.com/X1pt2bLqZi
— AutoInsurance.org (@AutoInsurance) February 25, 2023
How much will insurance pay for a stolen car? If your stolen car is found badly damaged and the insurance company decides to write it off as “totaled,” they will cut you a check only for the market value of the car, not for how much you originally paid for it or necessarily how much a replacement car will cost. Learn more in our article, Totaled Car Value Calculator.
You’ll most likely hear the term “actual cash value” from your insurer. What is actual cash value of a car? That means the car’s market value at the time of loss or damage, minus any depreciation. For details, see our article Replacement Cost vs. Actual Cash Value: Car Insurance.
What happens if your car is stolen and you still owe money? You're still obligated to make payments on your vehicle until it's paid off. If you have comprehensive auto insurance, that amount will be minus what your insurance provider pays your lender or leasing company once a claim is settled. Your insurance company will pay the actual cash value of your vehicle, which is why some drivers opt for gap insurance coverage, which pays the difference between what your car is worth and what you owe.Brandon Frady Licensed Insurance Producer
Read more: How does gap insurance work after a car is stolen?
What happens if your car is stolen and never found? If your car is not found after the time is up, they will treat the auto insurance claim the same way. You will receive a payment for the value of the vehicle only.
What Comprehensive Insurance Covers
What is the difference between comprehensive auto insurance and liability auto insurance?
Although some state auto insurance laws only require drivers to carry a liability insurance policy on their car, it is a good idea to also have a comprehensive and collision policy.
A comprehensive insurance policy will protect your vehicle from losses and damage not caused by a collision. It also covers vehicles damaged by you, but not in an accident.
There are exceptions to every policy, but generally, comprehensive coverage includes losses from fire, earthquake, explosions, falling or flying objects, like the neighbor’s son’s baseball, vandalism, theft, floods, riots, and breakage of glass, as well as damage to your car caused by hitting an animal.
In the event of a stolen car, most comprehensive insurance policies will also help pay for a rental car.
You are required to wait two days until the rental coverage kicks in, in case your car wasn’t actually stolen and you merely forgot that you lent it to a friend or family member.
However, most rental companies will waive the 48-hour requirement in the case of a stolen vehicle. Check with your insurance carrier before you rent the car and find out the amount of time they’ll cover the rental for, as well as the maximum cost that they’ll cover per day.
It’s a good idea to be fully protected with as much auto insurance as you can afford. Find out the rates in your area using the look-up tool on this page.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Car Theft Affects Auto Insurance Rates
My car has been stolen, will my insurance go up? Not necessarily.
With comprehensive coverage, your car is insured against theft. And the insurance company is only liable for the current market value of the car.
That said, theft rates in your area can affect your car insurance rates. If you live in an area where a lot of cars are stolen, insurance companies will consider that a high-risk area and will set rates accordingly.
Read more: Auto Insurance Rates by ZIP Code
Does car insurance cover theft of items?
Unfortunately, your comprehensive auto insurance policy only covers items stolen from a car that is meant to be a permanent part of the car or that can’t function without the car.
This would likely include items like a built-in, factory-installed navigation system or stereo, but not a dashboard-mounted GPS unit or iPod.
If you have homeowners or renters insurance, these policies should cover any personal items stolen out of your car, regardless of whether your car was parked in your driveway or in a parking lot.
If the items are valuable, file a police report for the stolen items, and then call your insurance company. If the items cost less to replace than the deductible on your insurance policy, then you should probably forget the claim and just replace them yourself.
When you call your insurance company, ask about your personal property coverage and the items that are not covered. Items excluded, or with limited coverage, include money, jewelry, furs, watches, and business property.
Your home insurance will not help you with any damage to your vehicle, so you will have to call both your homeowners and your auto insurance companies if your car was damaged during the theft of the items inside.
Frequently Asked Questions
Does auto insurance pay if my car is stolen?
If your car is stolen and you have comprehensive coverage, auto insurance may pay you. However, the amount you receive will be based on the current market value of your car.
What should I do if my car is stolen?
If your car is stolen, you should first call the police to report the theft and file a police report. Then, contact your car insurance carrier to inform them about the stolen car.
Does liability coverage cover theft?
No, liability coverage does not cover theft. To be covered for theft, you need comprehensive coverage as part of your auto insurance policy.
Will my insurance cover items stolen from my car?
Comprehensive auto insurance policies typically cover items stolen from a car if they are permanent parts of the car or cannot function without the car. However, personal items stolen from the car are generally covered by homeowners or renters insurance policies.
What do you pay out of pocket on an automobile or insurance claim?
You would pay your auto insurance deductible on a claim before your insurance covers the rest.
How does an insurance company determine the value of your car?
Your auto insurance company will look at factors including:
- general market value of the vehicle
- make and model of the car
- mileage
- normal wear and tear from use
- parts replacements
Can I negotiate actual cash value?
Yes, if you disagree with the insurance company’s estimate of your vehicle’s value, you can negotiate with them for a higher payout. It will help if you gather all evidence and documentation, look for comparable values of your vehicle in your area, and then prepare a thorough counteroffer.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.